IIM-B might borrow to carry out expansion

BANGALORE: Faced with the challenge of carrying out 54 per cent expansion by 2010, the Indian Institute of Management-Bangalore (IIM-B) is toying with the idea of borrowing external funds to meet its growing costs.

The Board of Governors headed by Reliance CMD Mukesh Ambani is meeting on Friday to consider the proposal put up by the institute on seeking the HRD Ministry’s approval before going ahead with the borrowing.The Board had earlier requested Ravi Parthasarathy, Chairman and MD of Infrastructure Leasing and Financial Services Limited, to submit a report on whether it was mandatory under the Memorandum of Association (MoA) of IIM-B Society to get the Central Government’s approval for borrowing funds.Out of an estimated Rs 70 crore required to carry out the expansion plans of the institute, the HRD Ministry has committed to releasing only Rs 33 crore.Other issues topping the agenda include summer placements and amending the MoA to carry out expansion plans of the institute.

IIM-B Chairperson (placements) Sovrav Mukherji will make a presentation on the changing strategies and trends in summer placements due in second week of November in the wake of global financial slowdown.IIM-B professor Trilochan Sastry is slated to brief the Board members on the status of the committee constituted to make recommendations on amending the MoA of IIM-B.Amending MoA is essential to support the institute’s application for IT exemption under Section 12A of the IT Act 1961 and to expand and diversify the portfolio of activities both within and outside India.One of the Board members had earlier proposed to delete reference to by-laws in MoA and to incorporate new procedures notified by the Centre for appointment of Chairman and Director.

The Board meeting will be followed by the Foundation Day lecture on ‘Innovations in Healthcare Delivery’ by Devi Prasad Shetty, chairman of Narayana Hrudayalaya.

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